Labor’s net zero authority wins backing after workers call for help to leave fossil fuel industry
Peter Hannam
Guardian Australia
Thu, 4 May 2023
Photograph: Roni Bintang/Getty Images
Industry groups and unions have welcomed the Albanese government’s creation of a net zero authority aimed at filling the economic hole left by the closure of fossil fuel mines and power stations.
The government on Friday confirmed reports that it would set up the authority to promote “the orderly and positive economic transformation” resulting from the shift off carbon polluting industries.
Initially, it will set up an agency to start work by 1 July that will advise the government on the final design of a national net zero authority that will be legislated.
Related: Labor warns NSW facing a ‘momentous task’ in transition to renewables
Speaking from Lake Liddell, near Muswellbrook in the Hunter region of New South Wales, the energy minister, Chris Bowen, said: “We want this authority to focus like a laser on any obstacles to job creation and investment. We want it to be a one-stop shop for those thinking of coming to regions like this to create new jobs, to create investment, to create jobs for the future.”
Bowen said the new authority would cost $23m in the first year. There will also be $400m from the Powering the Regions Fund to be administered by the Australian Renewable Energy Agency. “Decarbonisation is absolutely essential, but it also takes investment”, he said.
The La Trobe Valley in Victoria and the NSW regions of Lithgow and the Hunter Valley – home to coal mines and power stations – are among the areas that have been calling for coordinated help as industries prepare for decarbonisation.
Back in March, the ACTU renewed its call for a national energy transition body to help workers exit the fossil fuel industry, with indications last week the coming federal budget would allocate funds for one.
Bowen said he had briefed the NSW energy minister, Penny Sharpe, and other energy ministers. The federal body would complement NSW’s own transition body.
Once legislated, the authority would aim to help workers retrain to find new jobs, coordinate programs across government and encourage investment in low-carbon industries to generate new employment.
“For years, [Australian Manufacturing Workers’ Union] members have been campaigning for a national just transition authority,” the union’s national secretary, Steve Murphy, said.
“The move to renewables is happening, but if it’s left up to the private sector, workers will be abandoned, their communities will suffer, and thousands of good jobs will go.
“Right across the board, everyone is on the same page now – we all recognise that can’t be allowed to happen.”
The Business Council chief executive, Jennifer Westacott, said the creation of the authority was “crucial step towards a managed transition that brings communities on this journey”.
Related: Competitive market to build NSW renewables drives energy price floors to record lows
“Australia’s transition has been held up in part because communities lost confidence in our ability to make this monumental change,” Westacott said. “This is an opportunity for better jobs and better living standards, this agency will do some of the work needed to fix that.”
The Australian Council of Superannuation Investors also welcomed the move.
“The transition to a low carbon economy is the most significant transformation of our economy since the Industrial Revolution,” said ACSI’s CEO, Louise Davidson, said.
“International examples illustrate that a lack of coordination leads to poor outcomes for affected communities, workers and economic activity more broadly.”
Bowen did not say who would lead the authority but said it would have “broad representation”.
“The cabinet will be considering appointments in coming weeks and we’ll make further announcements after that,” he said, adding that the government planned to legislate the authority “over the course of the next 12 months”.
Thu, 4 May 2023
Photograph: Roni Bintang/Getty Images
Industry groups and unions have welcomed the Albanese government’s creation of a net zero authority aimed at filling the economic hole left by the closure of fossil fuel mines and power stations.
The government on Friday confirmed reports that it would set up the authority to promote “the orderly and positive economic transformation” resulting from the shift off carbon polluting industries.
Initially, it will set up an agency to start work by 1 July that will advise the government on the final design of a national net zero authority that will be legislated.
Related: Labor warns NSW facing a ‘momentous task’ in transition to renewables
Speaking from Lake Liddell, near Muswellbrook in the Hunter region of New South Wales, the energy minister, Chris Bowen, said: “We want this authority to focus like a laser on any obstacles to job creation and investment. We want it to be a one-stop shop for those thinking of coming to regions like this to create new jobs, to create investment, to create jobs for the future.”
Bowen said the new authority would cost $23m in the first year. There will also be $400m from the Powering the Regions Fund to be administered by the Australian Renewable Energy Agency. “Decarbonisation is absolutely essential, but it also takes investment”, he said.
The La Trobe Valley in Victoria and the NSW regions of Lithgow and the Hunter Valley – home to coal mines and power stations – are among the areas that have been calling for coordinated help as industries prepare for decarbonisation.
Back in March, the ACTU renewed its call for a national energy transition body to help workers exit the fossil fuel industry, with indications last week the coming federal budget would allocate funds for one.
Bowen said he had briefed the NSW energy minister, Penny Sharpe, and other energy ministers. The federal body would complement NSW’s own transition body.
Once legislated, the authority would aim to help workers retrain to find new jobs, coordinate programs across government and encourage investment in low-carbon industries to generate new employment.
“For years, [Australian Manufacturing Workers’ Union] members have been campaigning for a national just transition authority,” the union’s national secretary, Steve Murphy, said.
“The move to renewables is happening, but if it’s left up to the private sector, workers will be abandoned, their communities will suffer, and thousands of good jobs will go.
“Right across the board, everyone is on the same page now – we all recognise that can’t be allowed to happen.”
The Business Council chief executive, Jennifer Westacott, said the creation of the authority was “crucial step towards a managed transition that brings communities on this journey”.
Related: Competitive market to build NSW renewables drives energy price floors to record lows
“Australia’s transition has been held up in part because communities lost confidence in our ability to make this monumental change,” Westacott said. “This is an opportunity for better jobs and better living standards, this agency will do some of the work needed to fix that.”
The Australian Council of Superannuation Investors also welcomed the move.
“The transition to a low carbon economy is the most significant transformation of our economy since the Industrial Revolution,” said ACSI’s CEO, Louise Davidson, said.
“International examples illustrate that a lack of coordination leads to poor outcomes for affected communities, workers and economic activity more broadly.”
Bowen did not say who would lead the authority but said it would have “broad representation”.
“The cabinet will be considering appointments in coming weeks and we’ll make further announcements after that,” he said, adding that the government planned to legislate the authority “over the course of the next 12 months”.
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